http://www.helioschariot.com/2014/03/23/chariot-positive-momentum/ £1 by xmas is conservative imo. Seriously! Think of it - Centrals farm out (kerching), Mauritania Tier 2 farm out (Kerching) , drill announcements (kerching kerching) , one of the nearby oilers striking (kerching kaboom) , the Mauritania CPR in the next 4 weeks (kerching) , the Morocco 3d Tier Seismic (kerching), Petrobras/BP renewing on 2714A (which requires a drill and is next to the acreage that 4 other oilers including Shell acquired in the last 6 weeks and next to Kudu (kerching) and someone going for 2714 B potentially - e.g. Apache (kerching) ... oh - and Brazil ...and so on ... £2 by xmas... p.s you may use kerching .. tick tock...
Chariot Oil & Gas (LON:CHAR) is working to become a “fast follower” in emerging exploration frontiers, according to chief executive Larry Bottomley. This comes after a year of transition, following disappointing exploration results offshore Namibia. Since then, the company has expanded the project portfolio, adding diversity, with assets in Brazil and most recently acreage in Morocco. The aim is also to become a ‘zero cost’ explorer by identifying and maturing prospects before bringing partners prior to drilling. This way, the idea is to receive a ‘carry’ on drill programmes and potentially secure back costs as well. "Under a new executive management team, this year has seen significant technical and strategic developments and we have made substantial progress in the evaluation of the prospectivity of our assets,” Bottomley said in today’s results statement. “There has been a shift in focus towards mitigated risk and capital discipline, the framework of which has seen Chariot successfully diversify its portfolio into a new, highly prospective frontier province offshore Brazil and secure a partner in the seismic phase of exploration offshore Mauritania. “We have managed our portfolio in a way which will enable us to capitalise on a lower risk, fast follower positioning, aspiring to "zero cost exploration" and allowing for optimum target maturation prior to drilling.” Chariot’s future exploration programmes are expected to involve lower risk exploration than in the past. Indeed, analysts reckon investor can have greater confidence in future drilling. “By becoming a ‘fast follower’ and allowing other operators take the upfront risk in frontier basins, we should have more confidence in future drilling,” finnCap analyst Dougie Youngson said. “Namibia is drill ready and Mauritania should also be later this year, but both are subject to farmouts. “The company is also targeting this to be the case for Morocco (2015) and Brazil (2016) dependent upon the results of 3D seismic in each country. “Overall, a positive update today and we expect this to become a newsflow-driven story over the remainder of this year.” Chariot ended the twelve month period, to December 31, with US$56.7mln of cash and it was debt free. In 2013, the group made a loss of US$10.5mln, down from the previous year’s loss of US$88.6mln which included a US$80.9mln write off following the failure of the Tapir South exploration well.
Still with only c200M shares ... Don't need to tell you how fast this moves on news, and lets be honest we haven't had a lot of news in the last 18 months. There's a hell of a lot of news due in 2014 and our already healthy cash Balance will be added to accordingly.
I think many tire of hearing £1 by Xmas talk but with what is coming why not ? Might sound like a ramp but I
"Concurrent to this, the Company has leveraged its strong relationships for data sharing and has been able to integrate the information from third party activity into the understanding of its portfolio. In combining this additional insight into our own database, we have been able to maximise the value associated with our assets in order to provide the best description of our acreage for obtaining partnerships to carry the programme forward."
Does this help explain the Namibia Block 2714 A 740mmboe+ recently added to the presentations?
Southern - great prospects - shallower area - Chariot believe Shell acquired the Signet Ltd orange basin acreage south of ours 2714 A (740bbe+ recently added to the presentation aka Nimrod area!) and 2714b (awaiting results after recent seismic) to target the shallower area - as in 2714 b! 4 oilers in the last month moving into the Orange basis is clearly significant. Centrals - Larry was asked by Will Forbes of Edison Investment Research about farm-outs of centrals and Larry said something interesting - he could not 'talk to' the drill - 2014 or 2015 - because of the on-going commercial sensitivities ... '-) I think we are getting close and Chariot are closing out negotiations.. In the Northern area - lets see how TRP get on - its a separate basin - but we have the Zamba prospect which looks ripe... happy days.
The market often gets it wrong and regarding char they have in a big way,i have been in char from day one riding all the way up to £3,taking some profits along the way.Loaded up at 18/20p but also have some at much higher average we are in a much better position than when we was at £3.Sometimes you need a few bites at the cherry to hit oil just look at the north sea oil they had about 12 goes at it before they hit the jackpot.And with the data we have char is understanding the acerage better each time gla...
Yes - Larry did say Mauritania was the lowest risk in the portfolio. Let's face it - Cairn jumped in on Tier 1 farm-out based on 2d alone. Cairn's published volumetric estimates for that acreage are huge and both companies left the door open for Cairn to take operatorship from Chariot. My best guess - Cairn will take it - Cajun Express Rig, Q4, More cash - and a free carry on - low - 1.5bn+ to high 5bn+ prospects.One strike and we become the next Tullow....I am chomping at the bit to see the CPR for Mauritania, the farm-in, and the fast follower! Very soon... and then there is Namibia, Morocco, Brazil... I keep pinching myself that the market missed this - but happy it is now waking up fast...!
Larry's comment on the conference call about mauritania being lowest risk (due to proven basin) is worth noting. Also, see clip below from previous CEO Paul Welch regarding mauritania in 2012. Very upbeat and even mentioned Chevron rumoured to come in;
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